Comment by the_gastropod
1 month ago
I don’t know if there are other ways eBay could lose money on returns. But my single data point: the very first thing I sold on eBay (a manual lever espresso machine) got returned because the buyer clearly didn’t know how to use it, and claimed it was defective. And because eBay has a money back guarantee, they just reached their hands into my back account and withdrew the earnings from the sale + the shipping costs for the delivery to the buyer + the shipping fees for the return. They even kept their listing fee and the sales tax. So… I don’t think eBay stands to lose money directly from returns. Maybe they risk pissing too many sellers off with an increased rate of this horrific experience?!
eBay needs to focus attention, efforts and resources on this if it's an increasing problem so the alternative uses for those resources is a cost. If sellers like you get mad and don't list that costs them too.
Like etsy, they long since worked out that most volume is through dropshippers of products mass produced in China. Or a few physical businesses like houseclearers which can manage a high throughput. If you're a random private seller with a single item, you're an inconvenience to them.
"Power Sellers" - there was a statement that your business (for marketplace-type-business) needed to have an avenue to support "mega" suppliers for eventual symbiotic success.
There was a business a while back that was like "pay $50-100 to carpool from SF to LA" and the post-mortem was: "your earning potential was limited, no power-seller support" b/c eventually just turn into a bus-driver/bus company. (Uber is an interesting contra-example).
It's stuck with me as a quick analysis of business-types: how does the power-seller eventually make 10x, or at least 2x median wages?
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Anecdotally, I see a lot of small sellers using FB marketplace. Those are cash/venmo type deals done in person. That might just be because I live in a big enough metro area to support that.
It's about a difference of degrees. If experiences like yours happen very rarely ebay is fine with it but if it become too common then sellers will leave which is obviously a huge loss for ebay.
I only sell stuff on EBay as-is, no returns. I'm not sure if this protects me from their money back guarantee, but it gives me a little peace of mind until I too get bitten.
My listing was as-is, no returns. Didn’t matter. And I tried challenging it. Recorded a video where I opened the returned machine, assembled it, and pulled a perfect shot of espresso. Based on my server’s access logs, nobody at eBay even viewed the video. Whole experience cost me over $200 in shipping fees. Horrible experience.
That stinks! I feel very lucky now that I've gotten away scot-free.
Did you sue them?
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IANAL: but if a seller misrepresents what they’re selling then “As is” doesn’t help them. If I sell you a Ferrari “as is” but I send you a kit car that looks like a Ferrari, “as is” ain’t gonna help.
Yep. Therein lies the rub. eBay inserts themselves as the middle-man here. But they take 0 responsibility for assessing disputes if a buyer claims an item was not as described. They just arbitrarily refund buyers, and automatically pay for the shipping fees from the sellers' connected bank accounts. To make matters worse, as a seller, as far as I know, you can't limit how much the buyer can spend on shipping. So, e.g., if someone on the other side of the planet buys something from you, pays for shipping, then says "item not as described", you're going to be on the hook for a large sum. I guess this happens rarely enough for most big sellers that it's worth continuing to use ebay. But for average schmo use-cases (like selling old household goods), it's a ridiculous risk.
Selling as is helps a bit but it only covers regret returns. If the item is not as listed such as claiming to be new but the packing is opened, you're still obligated to accept a return
It doesn't hurt to add it....but it doesn't help as it's happened to me.